Question: Please do it by type not pics. 1.Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. Project Z
Please do it by type not pics.
1.Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent.
| Project Z | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $2,500 | $650 | $780 | $950 | $600 | $400 |
| PI= | ||||||
Should the project be accepted or rejected?
rejected
accepted
2.Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent.
| Project Q | |||||
| Time: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | $11,100 | $3,400 | $4,230 | $1,570 | $2,200 |
PI=
Should the project be accepted or rejected?
rejected
accepted
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